If you have received an application from your mortgage lender for repossession of your home, it is undoubtedly an extremely stressful time. Unfortunately, repossession applications are fairly common and due to the financial strain leading to the repossession, the home owner is unable to afford legal representation.
There are some circumstances where legal representation can be afforded. If that is your case, we will be more than happy to help you. Give us a call for a free no obligation chat over the phone. Here we will be able to advise you on the next steps to take.
Repossession orders are a horrible ordeal for anyone who faces it and therefore this page will outline advise to those who may fear that they face repossession orders in the future. It is important to plan for the future and ensure that you and your family can live safely. We therefore advise that you try to retain a savings account with approximately three months’ worth of salary in. Whilst we appreciate that this is a difficult task, it is essential that you can prove that you are able to keep up the repayments on the house.
If you do at any point have difficulties making the repayments, then you should contact your lender at the earliest opportunity. This will allow you and the lender to plan ahead. Ignoring the problem will not make it go away and can compound the problem. Banks are required by law to offer free impartial advice. They can recommend steps such as remortgaging your home. This means that repossession should be the last resort.
It may sound senseless, but some home owners find that letting their house be repossessed, is a relief as it ends the debt and provides an opportunity to start again. If you want to keep your house, you should speak to your lender. They are obliged to ensure that they do all they can to keep a home owner in the house; it offers a degree of flexibility. If you do not talk to your lender, then it is more likely that they will issue procedures in the Court. When you go to speak to your lender, organise your finances to demonstrate what you want and show that you can afford to maintain your proposals. You should include a statement of income and spending; this will show clear validation of your financial situation.
When organising your financial affairs, it is important to include as much detail as possible. Collate a record of all your creditors, the amount owed and the dates due. This will allow financial planners to assess your situation and give you the best possible advice.
If the matter goes to Court, the Judge has restrictions on what they can order to happen. The Judge can calculate the total of the arrears and spread the repayment over the remaining term of the mortgage or allow the lender to repossess. If the Judge decides that the lender should repossess the house, they will grant a possession order. Under a possession order, possession of the house is ordered after 28 days (or multiples of 28 days). If the Judge allows the home owner to make the payments over the remaining term of the mortgage, then the possession is suspended so long as the payments are made. If the home owner then defaults on the payments, then the lender can carry through the order and allow the lender to repossess the property. Once the lender has repossessed the property, it is likely that the lender will sell the house to recover the outstanding fees.
Sometimes a home owner may find the repossession order as a relief. There are of course implications to agreeing to the repossession and this should be discussed with your lender. The lender will have a balance outstanding figure which is the total amount owed. This means that the home owner could still owe money even after the property has been sold. In this instance, the home owner should discuss their options with the lender.
Here at Seatons we are experts in property law. We have years of experience and are known as the friendly professionals. We have earnt that reputation by ensuring that you are the centre of everything we do. If you feel that your house is being repossessed wrongly or you are simply not sure what to do, then call us for a free no obligation chat over the phone where a member of our highly experienced team will assess your case and advise you on the next steps to take.
Expert help and advice with Repossessions
Hello, I am Adam Cresswell and I am the Head of Seatons Solicitors Civil Litigation Department.
We are specialists in Civil Litigation matters. Dealing with a dispute, whether it is small or large, can be a particularly stressful experience, especially if you are unsure about the costs and procedures involved. Our Litigation Team regularly handle a wide range of disputes and we can provide practical and specialist advice with the aim of resolving your dispute quickly and cost-effectively.
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If you have a Civil Litigation matter and are thinking about pursuing it then please call us.
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